In July 2024, Nigeria experienced a drop in inflation to 33.40 percent from 34.19 percent in June on a year-on-year basis.
For the first time since December 2022, the country’s inflation rate has shown a decrease when it was at 21.34 percent.
The latest Consumer Price Index and Inflation report for July released by the National Bureau of Statistics revealed this positive development.
This decline of 0.79 percent compared to the 34.19 percent recorded in June 2024 was a welcome change.
Financial analysts had anticipated this cooling off of inflation from July to August, aligning with the actual data released.
Back in June, the Chief Executive Officer of Financial Derivatives had foresaw this trend, stating, “The rate of price level increase is beginning to slow down, indicating a forthcoming decline from July to August.”
Olayemi Cardoso, the CBN governor, had previously reassured that the Monetary Policy Committee would take necessary actions to control inflation.
One of the strategies employed to tame inflation has been the continuous increase in interest rates by the CBN through the MPC, with the most recent hike of 50 basis points in July from 26.25 percent in May to 26.75 percent.
In addition to these measures, the Nigerian government recently implemented fiscal policies such as zero import duties on selected staple foods to combat inflation.
In a proactive move, the Defence Headquarters announced the deployment of troops to farms, particularly in the North East and North Central regions, to ensure a smooth farming season in Nigeria.
Food Inflation: Troops deployed to farms – DHQs